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Analysis of Household and Demographic Characteristics to Identify Key Determinants of Poverty in Bangladesh: A Logistic Regression Analysis
Authors: Sacchidanand Majumder, and Soma Dey
Source: ULAB Journal of Science and Engineering, 8(1)
Topic(s): Poverty
Country: Asia
Published: NOV 2017
Abstract: The objectives of this study are to analyses socio-economic status of household and to identify key determinants of poverty in Bangladesh using the BDHS (2014) data. The principal component analysis was used to create an asset index which gave social economic status (SES) of each household. Finally, based on this data, a logistic regression was estimated with SES as the dependent variable and a set of demographic variables as the explanatory variables. The result shows that the probability of a household being poor depends on the ownership of assets and other household data. Land ownership, electricity connection and other durable goods, and house with cemented floor, walls and roofs, and quality source of drinking water have positive impact on SES. The multivariate analysis shows that increase in the educational level of household head and numbers of literate members in household have an impact on the probability of a household being non-poor. The logistic model of rural and urban poverty suggests that most of the variation is explained by rural poverty. The other demographic factors that affect the probability of a household being poor are household size, age of household’s head and dependency ratio.